Standard and Poor announced today that Tyco Electronics Ltd. (NYSE:TEL) will be removed from the S&P 500 after the close of trading on Thursday, June 25. Tyco is in the process of re-domesticating to Switzerland, according to Standard and Poor, rendering Tyco ineligible for continued inclusion in the S&P 500 index. Tyco Electronics’ place in the S&P 500 will be taken by MetroPCS Communications Inc. (NYSE:PCS) effective after the close of trading on Monday, June 29, 2009.
Tyco’s move comes in the wake of the United States Supreme Court’s refusal to hear an appeal from L. Dennis Kozlowski, the imprisoned former chief of Tyco International who presided over a giant conglomerate before becoming the target of fraud charges and a symbol of corporate excess.
The Supreme Court denial ended the legal efforts by Mr. Kozlowski and Mark Swartz, Tyco’s former finance chief, to challenge their fraud and larceny convictions related to big bonuses that Tyco paid out.
Kozlowski was convicted of fraud and grand larceny for misappropriating more than $400 million from Tyco for personal use, including the purchase of a $6,000 shower curtain and throwing a decadent birthday party for his wife on the island of Sardinia.